What Determines the Financial Literacy of Young People? An Analysis from PISA 2012

40 Pages Posted: 1 Jun 2015

See all articles by Maria Jesús Mancebon

Maria Jesús Mancebon

University of Zaragoza - Department of Economic History and Applied Economics

Domingo Ximénez-de-Embún

University of Zaragoza - Department of Economic Analysis

José María Gómez-Sancho

University of Zaragoza

Date Written: February 5, 2015

Abstract

This paper aims to disentangle the factors determining the financial skills of young people in order to inspire effective policies aimed at improving the financial literacy of the population. PISA 2012 data is used. Special attention is paid to the sample selection and simultaneity biases that threaten the internal validity of the estimations. Our results show that the most important determinants of financial literacy of students are mathematical skills. Household socioeconomic level also has a statistically significant effect. School management model (public versus private) does not display any significant effect on the promotion of the financial culture of students.

Keywords: Financial literacy, mathematical performance, school choice, selection bias, simultaneity bias, multilevel models, propensity score matching

JEL Classification: A21, D14, I20

Suggested Citation

Mancebon Morrubia, Maria Jesús and Ximénez-de-Embún, Domingo and Gómez-Sancho, José María, What Determines the Financial Literacy of Young People? An Analysis from PISA 2012 (February 5, 2015). Available at SSRN: https://ssrn.com/abstract=2612606 or http://dx.doi.org/10.2139/ssrn.2612606

Maria Jesús Mancebon Morrubia

University of Zaragoza - Department of Economic History and Applied Economics ( email )

Gran Via 2
50005 Zaragoza
Spain

Domingo Ximénez-de-Embún (Contact Author)

University of Zaragoza - Department of Economic Analysis ( email )

Gran Vía 2
Facultad de Economía y Empresa
Zaragoza, 50005
Spain
+34876554785 (Phone)

José María Gómez-Sancho

University of Zaragoza ( email )

Gran Via 2
Zaragoza, 50005
Spain

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